Correlation Between INDOFOOD AGRI and ACCSYS TECHPLC
Can any of the company-specific risk be diversified away by investing in both INDOFOOD AGRI and ACCSYS TECHPLC at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining INDOFOOD AGRI and ACCSYS TECHPLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INDOFOOD AGRI RES and ACCSYS TECHPLC EO, you can compare the effects of market volatilities on INDOFOOD AGRI and ACCSYS TECHPLC and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in INDOFOOD AGRI with a short position of ACCSYS TECHPLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of INDOFOOD AGRI and ACCSYS TECHPLC.
Diversification Opportunities for INDOFOOD AGRI and ACCSYS TECHPLC
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between INDOFOOD and ACCSYS is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding INDOFOOD AGRI RES and ACCSYS TECHPLC EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACCSYS TECHPLC EO and INDOFOOD AGRI is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on INDOFOOD AGRI RES are associated (or correlated) with ACCSYS TECHPLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACCSYS TECHPLC EO has no effect on the direction of INDOFOOD AGRI i.e., INDOFOOD AGRI and ACCSYS TECHPLC go up and down completely randomly.
Pair Corralation between INDOFOOD AGRI and ACCSYS TECHPLC
Assuming the 90 days trading horizon INDOFOOD AGRI RES is expected to generate 0.91 times more return on investment than ACCSYS TECHPLC. However, INDOFOOD AGRI RES is 1.1 times less risky than ACCSYS TECHPLC. It trades about 0.03 of its potential returns per unit of risk. ACCSYS TECHPLC EO is currently generating about -0.03 per unit of risk. If you would invest 19.00 in INDOFOOD AGRI RES on September 1, 2024 and sell it today you would earn a total of 3.00 from holding INDOFOOD AGRI RES or generate 15.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INDOFOOD AGRI RES vs. ACCSYS TECHPLC EO
Performance |
| Timeline |
| INDOFOOD AGRI RES |
| ACCSYS TECHPLC EO |
INDOFOOD AGRI and ACCSYS TECHPLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INDOFOOD AGRI and ACCSYS TECHPLC
The main advantage of trading using opposite INDOFOOD AGRI and ACCSYS TECHPLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INDOFOOD AGRI position performs unexpectedly, ACCSYS TECHPLC can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ACCSYS TECHPLC will offset losses from the drop in ACCSYS TECHPLC's long position.| INDOFOOD AGRI vs. Playtech plc | INDOFOOD AGRI vs. GungHo Online Entertainment | INDOFOOD AGRI vs. TAL Education Group | INDOFOOD AGRI vs. CarsalesCom |
| ACCSYS TECHPLC vs. Sabra Health Care | ACCSYS TECHPLC vs. Bumrungrad Hospital Public | ACCSYS TECHPLC vs. REGAL ASIAN INVESTMENTS | ACCSYS TECHPLC vs. SEI INVESTMENTS |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |